SBA 7(a) Auto Repair Shop Feasibility Study in Ohio

Ohio repair loans are small

The median stands out most. Ohio auto repair loans under 7(a) have a median of $50,000, only 0.28x what the class borrows in the typical case nationwide. From FY2017 to FY2026 the file holds 452 loans worth $100.7 million, and the central half of loans spans $30,000 to $226,250. Ohio places fifth among states by count, and repair holds fifth place on Ohio's list of 39 classes. Franchise share is only 4.4%, so shops are mostly independent.

Why the tickets are small

A median of $50,000 describes tools, a lift, a small build-out or the purchase of a retiring owner's equipment, not a new building. A lender reading an Ohio request above the middle half should ask what real estate or goodwill is being financed, because the typical shop here borrows far less than the national median for the class. A borrower asking for more has to explain the extra with a purchase contract, a lease and a plan to use the added capacity.

Huntington's weight, and the counties

The Huntington National Bank is the stand-out lender, with 266 loans worth $38.2 million. Then come U.S. Bank, National Association (27 loans, $4.2 million), KeyBank National Association (13, $2.5 million), PNC Bank, National Association (11, $1.5 million) and Fifth Third Bank (9, $2.6 million). Only the portfolios are visible here; the table is silent on how any bank lends. Franklin County has 43 loans, Cuyahoga 38, Summit 24, Lake 22 and Stark 21, with Delaware at 19, Hamilton and Lucas at 18 each. Approvals peaked at 69 in FY2022 and fell to 29 in FY2026.

Cancellation and failure

Ohio repair approvals from FY2017 to FY2024 lapsed at 12.9% or more, and it reaches 14.0% if loans not yet disbursed are written off as cancelled. Of 183 disbursed loans in the FY2017 to FY2021 cohort, 3.3% are charged off to date and 1.1% went within five years. Both are floors. With small loans, a modest percentage can still hide failed shops, and open loans may yet change both figures.

The class boundary

The class counts mechanical repair on cars and on trucks together. Bodywork, glass, oil change and every other automotive repair category sit outside it, so a collision centre or quick lube is not described here. The grouping also means a heavy-truck garage and a neighbourhood car shop appear in the same figures.

What an Ohio shop study has to test

Test technician supply and pay, how many hours each bay actually bills, parts margin and how many customers come back. Fleet accounts can steady a small shop, so any contracts should be documented. The monthly projection should show any swings in work through the year. The budget should be set against the $50,000 median and explain any request beyond $226,250. Repayment should survive a slow first year, and any property will be valued by an appraiser on what the shop earns.